Essay on Fiat - a Troubled European Car Giant

Words: 2201
Pages: 9

EUROPEAN STUDIES
FIAT:
A
TROUBLED
EUROPEAN
CAR
GIANT





GROUP
3:








1






Q1:

What
are
the
underlying
problems
facing
Fiat’s
car
division?

The
performance
of
Fiat

the
Italian
vehicle
manufacturer

has
fluctuated
drastically
between
its
founding
in
1899
and
today.
On
the
one
hand,
the
company
has
suffered
severe
failures,
flirting
with
insolvency
on
multiple
occasions.
On
the
other,
…show more content…
On
a
more
positive
note,
in
2004
Sergio
Marchionne
was
appointed
as
CEO
of
the
Fiat
Group
and
Corporation,
Marchionne
started
a
slow-­‐moving
restructure
that
resulted
in
significant
success
as
sales
increased
to
852,000
cars
in
2006,
revenues
increased
by
21%
to
$14.8
billion,
and
operating
profit
increased
to
$184
million.2
In
fact,
Fiat
was
pronounced
Europe's
fastest-­‐growing
automaker
in
2006.
Furthermore,
in
the
first
half
of
2006
Fiat's
vehicle
sales
shot
up
by
20.1%3
in
a
flat
European
market,
helping
the
Italian
auto
maker
grab
back
lost
European
market
share
which
stood
at
7.7%4
at
the
end
of
2006
(up
from
6.5%
in
the
first
half
of